KeyBanc Starts Tim Hortons (THI) at Hold

KeyBanc initiates coverage on Tim Hortons (NYSE: THI) with a Hold.

A slight valuation premium versus peers looks appropriate to KeyBanc amid: "1) SRS benefiting from improved market share at non-breakfast day-parts and platform improvements (i.e., specialty coffees); and 2) the development potential remaining in Canada."

The firm said bulls will point to "a steady stream of high margin royalties and rental income as the Company controls approximately 80% of the system real estate." On the other side of trade, bears will argue the company's "lack of awareness will make penetrating the U.S. market difficult, especially considering the existing competition."

For an analyst ratings summary and ratings history on Tim Hortons click here. For more ratings news on Tim Hortons click here.

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